a long time ago i posted some music videos made with star wars galaxies engine; seems there is a whole underground scene making movies with video game engines. personally i think this is the future of movies and it's pretty darn cool:

personally i think this is the future of movies and it's pretty darn cool:

(hopefully) the unreal 3 engine will be out some time next year. after you've seen what it can do, it's not hard to believe there will be a machinima movie making revolution.

unreal 3 movie demo (poor sound quality): http://www.ausgamers.com/files/details/html/15774 (the video isn't fantastic quality but if you look at the realism of the 3D models and the shadow effects you'll appreciate that it makes ALL other 3D engines look stupid, this really is NEXT generation graphics).